ANZ slices variable rates, Westpac serves up fixed home loan rate increases

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on January 21, 2022 Fact Checked
ANZ slices variable rates, Westpac serves up fixed home loan rate increases

On Thursday ANZ cut one variable interest rate, while on Friday Westpac served up some rate increases.

ANZ sliced the rate on its variable owner occupier 'Simplicity Plus' home loan paying principal & interest with up to 80% LVR.

It was cut by 10 basis points to 2.29% p.a. (2.33% p.a. comparison rate*).

ANZ however increased interest rates on a couple of variable investment home loans by between 10 and 20 basis points.

Meanwhile, Westpac increased interest rates on a whole smorgasboard of fixed home loans.

Everything fixed between one and five years, packaged and non packaged, investor and owner occupier, across a variety of LVRs was subject to a rate increase.

Some highlights included:

  • Fixed Options P&I 3 Years 70%: Up 15 basis points to 3.24% p.a. (4.30% p.a. comparison rate*)
  • Fixed Options P&I 4 Years 70%: Up 15 basis points to 3.54% p.a. (4.30% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years 70%: Up 10 basis points to 3.44% p.a. (4.74% p.a. comparison rate*)
  • Investment Fixed P&I 4 Years 70%: Up 10 basis points to 3.74% p.a. (4.73% p.a. comparison rate*)

Other home loans were increased by between 5 and 20 basis points, and many rate increases also applied to Westpac subsidiaries including St George, BankSA, and Bank of Melbourne.

At one stage in 2020, Westpac's four year fixed rate home loans for owner occupiers started with a 1.

Since January 2021 there have now been 145 basis points' worth of increases to some four year fixed home loans from Westpac.

In the case of Westpac's four-year 'Fixed Options' home loan for owner occupiers, 145 basis points on a $400,000 home loan on a 30 year term adds $308 in extra interest paid per month.

Westpac economists have also forecast an August 2022 RBA rate hike of 15 basis points, and a ceasure of its bond purchasing program in February.

Around the grounds

Again it was a tale of the smaller customer institutions increasing home loan rates in the past week.

BCU

The Coffs Coast-based credit union increased a host of fixed home loan rates for both owner occupiers and investors. Some highlights included:

  • Residential Fixed 2 Years P&I: Up 15 basis points to 2.19% p.a. (3.73% p.a. comparison rate*)
  • Investment Fixed 2 Years P&I: Up 15 basis points to 2.49% p.a. (3.91% p.a. comparison rate*)

Qudos Bank

Qudos Bank increased a gamut of home loan rates, fixed between one and five years for both owner occupiers and investors, by between 10 and 30 basis points.

Some highlights included:

  • OO 1 Year Fixed P&I 80%: Up 10 basis points to 1.89% p.a. (2.44% p.a. comparison rate*)
  • OO 3 Year Fixed P&I 80%: Up 30 basis points to 2.79% p.a. (2.56% p.a. comparison rate*)
  • Inv 1 Year Fixed P&I 80%: Up 10 basis points to 2.69% p.a. (3.01% p.a. comparison rate*)
  • Inv 3 Year Fixed P&I 80%: Up 30 basis points to 3.29% p.a. (3.10% p.a. comparison rate*)

Summerland Credit Union

The Northern Rivers-based credit union increased rates on a range of fixed home loans, including these highlights:

  • Standard Fixed 1 Year: Up 30 basis points to 2.29% p.a. (4.46% p.a. comparison rate*)
  • Standard Fixed 3 Year: Up 30 basis points to 3.04% p.a. (4.29% p.a. comparison rate*)
  • Inv Standard Fixed 1 Year: Up 30 basis points to 2.79% p.a. (4.93% p.a. comparison rate*)
  • Inv Standard Fixed 3 Year: Up 30 basis points to 3.39% p.a. (4.72% p.a. comparison rate*)

Summerland also slashed its 80% LVR owner occupied variable home loan with offset by 20 basis points - it now sits at 2.29% p.a. (2.47% p.a. comparison rate*).

Gateway Bank

Adding to its rate increases last week, this week Gateway Bank made a few changes for owner occupiers including:

  • Premium Variable 80%: Up 25 basis points to 2.39% p.a. (2.73% p.a. comparison rate*)
  • Green Home Loan: Up 25 basis points to 2.24% p.a. (2.59% p.a. comparison rate*)
  • Green Plus Home Loan: Up 25 basis points to 2.14% p.a. (2.49% p.a. comparison rate*)
  • Low Rate Essentials 80% 250k+: Up 25 basis points to 2.29% p.a. (2.32% p.a. comparison rate*)

Queensland Country Bank

QCB was up and down like a fiddler's elbow with its rate changes, bucking the trend and decreasing some fixed rates.

Some fixed rate decreases included:

  • 1 Year IO >80%: Cut by 20 basis points to 3.24% p.a. (4.84% p.a. comparison rate*)
  • 1 Year P&I >80%: Cut by 5 basis points to 3.04% p.a. (4.51% p.a. comparison rate*)

Various other fixed home loans were decreased by up to 20 basis points, while some others were increased by up to 20 basis points. 

QCB also cut the interest rate on its Ultimate home loan paying interest only on up to 80% LVR by 90 basis points.

It's now 2.59% p.a. (2.98% p.a. comparison rate*).


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Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

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Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
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AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

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  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
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NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.


Photo by John Fornander on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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